The Difference Between SKU and UPC Numbers and How to Create Each One

In the world of retail and inventory management, understanding the difference between SKU and UPC numbers is essential. These codes help businesses track products, manage inventory, and streamline the checkout process. In this blog post, we’ll explore what SKU and UPC numbers are, their differences, and how to create each one.

What is an SKU Number?

SKU stands for Stock Keeping Unit. It is a unique alphanumeric code assigned by a retailer to identify and track their inventory. SKUs are used internally within a business to manage stock and facilitate various operations, such as ordering, tracking, and sales analysis.

Key Features of SKUs:

• Customizable: Retailers can create SKUs based on their specific needs and preferences.
• Alphanumeric: SKUs can include both letters and numbers.
• Internal Use: Primarily used within a company for inventory management.

How to Create an SKU Number:

1. Choose a Format: Decide on a format that makes sense for your business. A common format includes a combination of letters and numbers representing different product attributes (e.g., brand, category, size, color).
2. Be Consistent: Maintain a consistent format across all products to avoid confusion.
3. Keep It Simple: Use short and easily recognizable codes. Avoid overly complex or lengthy SKUs.
4. Include Key Attributes: Incorporate key product attributes in the SKU. For example, a T-shirt might have an SKU like “TS-BLU-M” (T-shirt, Blue, Medium).
5. Avoid Reuse: Ensure each SKU is unique and avoid reusing old SKUs for new products.

What is a UPC Number?

UPC stands for Universal Product Code. It is a 12-digit numeric code that is used globally to identify products. UPCs are assigned by the manufacturer and are used for scanning and tracking products at the point of sale (POS). Each UPC is unique to a specific product and includes a barcode that can be scanned by POS systems.

Key Features of UPCs:

• Standardized: UPCs follow a standardized format and are recognized worldwide.
• Numeric: UPCs consist of 12 numeric digits only.
• Global Use: Used universally for product identification and checkout processes.

How to Create a UPC Number:

1. Register with GS1: To create UPCs, you need to register with GS1, a global standards organization. This involves purchasing a GS1 company prefix.
2. Assign Product Numbers: Once you have a company prefix, assign a unique product number to each item. The prefix and product number together form the 12-digit UPC.
3. Check Digit: The last digit of the UPC is a check digit, calculated based on the preceding digits to ensure the code’s accuracy. GS1 provides tools to help calculate this digit.
4. Generate Barcode: After creating the UPC number, generate a corresponding barcode. Use barcode software or services provided by GS1 to create scannable barcodes.
5. Label Products: Print the UPC barcode and label your products accordingly.

Differences Between SKU and UPC Numbers:

• Purpose: SKUs are used internally by retailers for inventory management, while UPCs are used universally for product identification at the POS.
• Format: SKUs are alphanumeric and customizable, whereas UPCs are standardized 12-digit numeric codes.
• Creation: Retailers create SKUs based on their own systems, while UPCs are assigned by the manufacturer and regulated by GS1.

Why Both Are Important:

• Inventory Management: SKUs help retailers efficiently manage and track their inventory.
• Global Commerce: UPCs enable products to be recognized and scanned worldwide, facilitating seamless transactions at the POS.
• Data Analysis: Both SKUs and UPCs provide valuable data for sales tracking, inventory control, and business analysis.

Understanding the difference between SKU and UPC numbers and knowing how to create them is crucial for efficient product management and sales operations. By implementing both, businesses can improve inventory accuracy, streamline checkout processes, and gain valuable insights into their sales data.

At ShipCarte, we offer comprehensive solutions to help you manage your inventory and streamline your logistics processes. Contact us today to learn how we can support your business with our expert services!